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Price Elasticity of Demand Calculator

Verified formula Updated Jun 2026 Private — runs on your device

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Verified formula Private

Price elasticity of demand

-1.222

For general information only — not financial, tax, legal or medical advice. Verify before you rely on it.

How to use the Price Elasticity of Demand Calculator

The Price Elasticity of Demand Calculator works out your price elasticity of demand in an instant. Enter initial price, initial quantity and new price and the result updates as you type — it is free, needs no sign-up, and runs entirely in your browser so your figures stay private.

  1. Enter the initial price.
  2. Enter the initial quantity.
  3. Enter the new price.
  4. Enter the new quantity.
  5. Read off your price elasticity of demand — the calculator updates automatically, with no button to press.

Formula

The Price Elasticity of Demand Calculator uses the formula:

Price elasticity of demand = ((New quantity - Initial quantity) ÷ ((Initial quantity + New quantity) ÷ 2)) ÷ ((New price - Initial price) ÷ ((Initial price + New price) ÷ 2))

Worked example

For example, with initial price of 10, initial quantity of 100, new price of 12 and new quantity of 80, the price elasticity of demand is -1.222.

Inputs used
Initial price 10
Initial quantity 100
New price 12
New quantity 80
Results
Price elasticity of demand -1.222

Results are estimates for educational use, not professional advice.

Frequently asked questions

It measures how much quantity demanded changes when price changes: the percentage change in quantity divided by the percentage change in price.

It uses the average of the two prices and quantities as the base, giving the same result whether price rises or falls.

An absolute value above 1 is elastic (demand responds strongly), below 1 is inelastic. The sign is usually negative.

It guides pricing. For inelastic goods, raising price can raise revenue; for elastic goods, it can lower revenue.

The Price Elasticity of Demand Calculator uses the formula: Price elasticity of demand = ((New quantity - Initial quantity) ÷ ((Initial quantity + New quantity) ÷ 2)) ÷ ((New price - Initial price) ÷ ((Initial price + New price) ÷ 2)). For example, with initial price of 10, initial quantity of 100, new price of 12 and new quantity of 80, the price elasticity of demand is -1.222.

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